Précis: The taxpayer claimed ITCs for GST/HST purposes on what it termed “instant rebate coupons” for its products sold at Costco. The problem was that it did not issue any coupons, either in paper form or in electronic form. Costco just automatically applied a discount to the products when they were purchased. CRA denied the ITCs on the basis that the discount was not a coupon but a promotional allowance under section 232.1 of the Excise Tax Act. The taxpayer appealed. Associate Chief Justice Lamarre reached the somewhat inevitable conclusion that without coupons the taxpayer had no case. The appeal was dismissed with costs.
Nestlé Canada v. R. - No ITCs for GST/HST purposes on imaginary couponsREAD MORE »